The MSCI China Index has a forward P/E of 7.8, or 13% below its historical average of 9, and it is trading at a cheaper valuation than the mainland Shanghai Composite.

The iShares MSCI China ETF (NYSEArca: MCHI), which tracks the MSCI China Index, is hovering around a 10.6 P/E. Other China H-shares-related ETFs are also trading at cheaper multiples. For instance, the iShares China Large-Cap ETF (NYSEArca: FXI), the largest China-related ETF that tracks Chinese companies listed on the Hong Kong stock exchange, has a 9.9 P/E and the SPDR S&P China ETF (NYSEArca: GXC) has a 10.5 P/E.

The MSCI Peru, MSCI Columbia and MSCI Taiwan indices are trading at a forward P/E of 9.4, 11.2 and 9.9 or 32%, and 25% and 22% below their respective 5-year mean.

The iShares MSCI All Peru Capped ETF (NYSEArca: EPU) shows a 13.6 P/E.

The Global X FTSE Colombia 20 ETF (NYSEArca: GXG) has a 15.9 P/E and the iShares MSCI Colombia Capped ETF (NYSEArca: ICOL) has a 14.9 P/E.

For Taiwan market exposure, the iShares MSCI Taiwan ETF (NYSEArca: EWT) has a 12.5 P/E, First Trust Taiwan AlphaDEX (NYSEArca: FTW) has a 11.4 P/E and SPDR MSCI Taiwan Quality Mix ETF (NYSEArca: QTWN) has a 13.1 P/E.

For more information on the developing economies, visit our emerging markets category.

Max Chen contributed to this article.

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